The history of trading dates back to the origin of humans. Since then, they have been trading, but the difference is that there were no specific coins or currencies people used to exchange goods and metals as trade.
After the emergence of states, particularly 6 nations, specific currencies have been developed, and the trade-in currencies have kicked off. Today every country has reserves of its currencies and foreign currencies, but it wasn’t always the same.
As the world has developed, so are the trading methods from the trade of metals and goods; humans have evolved to the trade of paper currencies, and what is to come in the future is unrevealed. Here in this article, we will explore the 5 significant historical facts about the forest market. So, without delaying a second. Let’s start exploring!
World’s First Forex Market
After the Dark ages, Europe saw the sunlight, enlightening the economies, infrastructures, and living standards of ordinary people. Today, Europe is the pioneer of many outstanding achievements. It won’t be wrong to say Forex Market is one of those achievements because Europe was the first to establish a Forex trading Market.
To be specific to the Netherlands, Amsterdam was the exact place to open a forex trading market more than 500 years ago from today to trade the local and foreign currencies of the world freely.
The Gold Standard Set-Up
Two and half centuries after establishing a forex trading market, the Gold standard was set up or fixed in 1875. The Gold Standard worked so that a country would print only the notes whose worth equivalent gold reserves were present in that country, but after the world war, nations were in dire need of printing more money; hence they let go of the gold standard set up.
Magic of Paul Stirling
There is no second thought that Great Britain was the most incredible power among all colonizers; hence they had evident control over the world’s wealth and economy. At the time of forex trading, Britain was in the driving seat, and their pound was touching the sky, and this led to the stat that 50% of the trade was made in pound sterling. The Pound Sterling is the 4th most traded currency after the US dollar, Euro, and Japanese Yen.
Bretton Woods System
The Gold Standard was introduced in 1875, but it could last nearly 40 years and fail after the first world war. Then, the forex trading experts came up with a new system known as the Bretton Woods system, the successor of the gold standard setup. It was operational during and after the second world war and was finally put to an end by Richard Nixon.
US Dollar Supremacy
After the fall down of the British world saw the emergence of a new power, the United States. This country hasn’t conquered many states compared to births but has more diplomatic control over the world than the British ever had. The United States leads the world in every aspect, and its currency DOllars have become the international currency. That is why it’s the most traded currency in the forex market today.
Hence, by talking about the history of forex trading, we intend to dedicate this article to such historical things of forex trading which a trader or anyone interested in forex trading would want to memorize. Well, if you still want to explore more about forex, then you can explore the website https://tradefx.co.za/veracity-markets-minimum-deposit/.